The IRS defines a repair as something that keeps your property in good working condition without significantly adding value or extending its life.

I lean toward the latter—this is more about economic conditions and the lingering post-COVID effects.

Meanwhile hardly any emphasis is placed on the loan administration and even more importantly the relationship component of lending.Far too many investors, particularly those just starting out, are being conditioned to seek out the “easy” lending choice rather than invest time and energy required to cultivate meaningful relationships with lenders who truly value the borrower/lender relationship and are interested in assisting you grow.

The city approved rental license inspector essentially just tested to make sure there was access to hot water, access to heat, no unsafe conditions like exposed electric wiring, CO/smoke detectors present/functional, fire extinguishers present/not expired, etc.

Taking that money out and anything that leads to more people using the equity from their homes and reduces the friction to that process is not good in the long run.As a NPL buyer who buys 1st position mortgages, we do watch stuff like this carefully as the moment these borrowers get high CLTV's any drop in pricing and change in economic conditions will lead to more foreclosures versus bankruptcies.

We negotiated based on the property's existing condition and potential post-renovation value, successfully securing a favorable deal for both parties at $100,200, enabling us to unlock its hidden value.

Cleaning fee: they cleaned, but still very dirty. 12. carpet damaged in 2 rooms, yes it is old carpet but in perfect condition before they move in.

We evaluate the asset off the current cash-flow, building condition, performance compared to peers, rent rates compared to market, and overall health of the local market.

Despite a 40% drop in net absorption, the vacancy rate remains stable at around 4%, indicating continued tight conditions due to limited new construction.Industrial PropertiesThe industrial sector is cooling, with net absorption down 70% from last year and rent growth slowing to 3.6%.

You'll want to do your own due diligence to verify the ARV is accurate.When viewing the physical property, document the entire condition of the property.